Cole Taylor Bank has abandoned plans to unload its mortgage banking unit and lost the president of the business.
The Chicago-based company originally disclosed a potential sale of Cole Taylor Mortgage in a July 2013 letter to the unit’s employees.
That disclosure came just a day after MB Financial Inc. announced an agreement to acquire parent Taylor Capital Group Inc.
The deal is expected to close by next month.
But subsidiary Cole Taylor Bank announced on Friday that it is no longer attempting to sell Cole Taylor Mortgage and will instead invest in its ongoing growth.
“As we evaluated the possible sale of the division over the past year, we determined that potential buyers didn’t share our appreciation for the long-term value of the business,” Cole Taylor Bank President and Chief Executive Officer Mark A. Hoppe stated in the announcement. “Therefore, we’ve decided to retain Cole Taylor Mortgage as a line of business going forward both in the short term and subsequent to our planned merger with MB Financial Bank.”
The mortgage business originated $6.5 billion in home loans last year.
In addition, William A. Newman, president of Cole Taylor Mortgage, has resigned, according to the statement.
“While we shared a common strategic goal for the organization, Willie’s broader and more expansive vision could not be achieved.,” Hoppe said.
Stepping in as interim president of the mortgage unit until a replacement is found is Cole Taylor Bank Chief Operating Officer Randall T. Conte.